A retired insurance industry executive turned turbo-charged motivational speaker told a group of independent insurance agents that they are the greediest people he has ever met.
Ray Thomas, a former Zurich North America Small Business CEO, meant his remark as a compliment, explaining that in order for agents to provide optimum service for their customers, they must make every effort to gain as much business as possible. Only then can they perpetuate a cycle of future business fueled by working capital earned from current business.
Thomas was keynote speaker at the Independent Insurance Agents of North Carolina annual conference in Asheville earlier this month.
Retired from Zurich in August 2005, Thomas said he relishes his current status as an independent speaker and consultant. He features a cartoon goose on his business card and tosses stuffed toy geese to his audience as rewards for correct responses to his questions.
Thomas said the goose has qualities that insurance agents should try to emulate, including the ability to be both a leader and a follower, referring to the flock’s streamlined flying ‘V’ formation: “When the leader is tired, he drops back and the next in line is there to fill in.”
Thomas’s business card also features nine “geese-isms” or bullets of inspirational guidance referring to issues of leadership, honesty, vision, service and honor. His Web site is at www.RayFlyingSolo.com.
Accusing the media of never reporting good news, Thomas applauded independent agents’ efforts following the catastrophic years of 2004 and 2005. He said since Hurricane Katrina, 3.3 million losses have been settled: “Ninety-nine percent of the auto claims are done and 98 percent of the homeowners claims are done.”
Agents’ success
He also praised agents’ success in commercial lines. “As independent insurance agents, you write 80 percent of all commercial lines in the U.S.,” Thomas told the audience of nearly 500. “This is a $467 billion industry – the underpinning of the U.S. economy.”
He attributed the gain in agency productivity to agents’ efforts in “harnessing technology – making this business more of a science than it has ever been in the past.”
He told his Asheville audience that while the insurance industry typically has a lower return on equity in relation to other industries, that is about change. “This year we’ll match Standard & Poors. The picture is rosy relative to the industry right now.”
He predicted that this year’s property and casualty industry combined ratio would be the best in 51 years. The impact of reserve changes based on the 2005 combined ratio has prompted CEOs to “firm up balance sheets, bolstering reserves and creating stronger balance sheets,” according to the former Zurich executive.
Highlighting the value of superior agency performance, Thomas presented a list of contributing factors: talent; profitability; organic growth or retention; stability of carriers; and productivity.
A business plan is among the ingredients of success, in his view.
“You have to have a business plan – you can’t fly by the seat of your pants,” Thomas said. “Agents who have a vision and a mission supported by a business plan are more profitable. And you must realize the power of new and renewal business – you have to do both well.”
Thomas emphasized the importance of a quality work force. He also urged agents to reinvest in the balance sheet, relinquish stock gradually and leverage benchmarking to understand and increase an agency’s value.
Topics Agencies North Carolina Market
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